Global Tax: G20 discusses plans for global minimum tax on billionaires

The G20 group of the world’s most powerful countries is exploring plans for a global minimum tax on the world’s 3,000 billionaires, aiming to end a “race to the bottom” that has enabled the super-rich to pay less than the rest of the population.

Leaders gathering in São Paulo for a key G20 meeting of finance ministers and central bank governors are preparing to discuss an internationally agreed backstop on the taxation of hypermobile wealthy individuals, amid increasing global cooperation to tackle tax avoidance.

Aiming to build on the cooperation that resulted in a 15% global minimum tax on multinational companies, which came into effect in January, the plan is being promoted under Brazil’s presidency of the G20 before a summit of world leaders in Rio de Janeiro in autumn.

Brazil’s finance minister, Fernando Haddad, under the leftwing government of the president, Luiz Inácio Lula da Silva, is pushing for the adoption of the policy. France’s finance minister, Bruno Le Maire, also gave his backing this week, saying Europe should take it forward.